Anadarko Petroleum Corporation, headquartered in Texas, has announced the discovery of a huge natural gas field off the coast of Mozambique in the Rovuma basin. Originally estimated at 6 trillion cubic feet, the new estimate has jumped to perhaps 30 trillion cubic feet. Anadarko stock responded positively with the announcement.
The company has been up and down for several years. Investors may have a reason to be happy if the field meets latest expectations. For comparison purposes, 30 trillion cubic feet exceeds the amount of natural gas used by the entire U.S. in a year. The U.S. consumed about 24 trillion cubic feet of natural gas in 2010. However, the U.S. may not receive imports from the area, as other countries are already in line.
Touted as perhaps the most important natural gas discovery in a decade, the field could be producing gas for export in five or six years. Anadarko is constructing a recovery and exportation facility in Mozambique as a result of the discovery.
ENI of Italy has also Raised its Estimates
ENI’s estimate is lower than has been somewhat less than Anadarko, but based a single well. The largest Italian oil and gas company estimates perhaps 22.5 trillion cubic feet might be recoverable. ENI’s original estimate was 7.5 trillion. ENI has drilled one well in the widely explored region and apparently hit the jackpot.
Several companies have partnered to drill for gas in area. ENI located gas at about 16,000 feet. Andarko’s discovery was at a similar depth. ENI plans to invest $50 billion in the project and export largely to Asian clients — notably China and Korea.
Mozambique Produces Natural Gas and Other Commodities
Although Mozambique has three gas fields known in the area, the country’s gas production has been limited. Certainly the revenue from the recent discoveries will assist the economy in Mozambique which currently ranks as one of the poorest in the world. Mozambique also has large, untapped coal reserves and produces a small but significant amount of natural gas already. Over 60% of the population lives below the poverty level.
As Mozambique continues to develop its resources, other African nations are becoming increasingly important as sources of energy for the United States. Estimates are that 25% of U.S. oil Imports will come from Africa by 2015.
New discoveries of natural gas may bring big profits to Anadarko Petroleum Corporation as a result of the discovery of a huge deposit of natural gas off the coast of Mozambique. Estimates run as high as 30 trillion cubic feet in the off coast Rovuma basin. Several oil companies are partners in the recovery of the gas. Mozambique’s poor economy should profit, as well.
Sources:
- “Mozambique Rovuma Wildcat is Gas Discovery,” Alan Petzet, February 10, 2011. ogj.com. (Accessed: November 28, 2011)
- “Anadarko Sees more Gas from Huge Mozambique Field,” AP, November 28, 2011. businessweek.com. (Accessed: November 28, 2011)
Harvey Craft - I am a retired educator with diverse experience. I read anything science, education, and history. I write to share what I learn.
